Why Carnival Cruise Line Stock Jumped 29% in October
Shares of Carnival (NYSE: CCL) (NYSE: CUK), the world's largest cruise line operator, moved higher last month. The company rebounded from a disappointing earnings report at the end of September, and macro-level news seemed to lift the battered travel stock.
It was a good month for stocks in general; the S&P 500 finished October up 8%. This could have been based on hopes of a "Fed pivot" -- that the Federal Reserve would soon begin reeling in its interest-rate hikes, relieving a key headwind on the stock.
Even in a normal environment, Carnival is sensitive to the macroeconomic climate: Travel, especially on cruise lines, is discretionary. And the stock is even more vulnerable while the business tries to stabilize itself as the pandemic eases. Carnival is a high-beta stock, meaning it tends to be more volatile than the broader market. According to data from S&P Global Market Intelligence, the stock finished the month up 29%.
Source Fool.com
